The latest stimulus measures will entail a near-term spend of about 0.5-0.6% of India’s GDP, with some of it likely to spill over into the next fiscal, according to economists. And they see benefits accruing over the medium term, with limited impact in the current financial year.
Finance minister Nirmala Sitharam announced 12 new measures to revive the economy under the third instalment of Atmanirbhar Bharat. The measures, ranging from employment creation and agricultural support to capex creation, will cost the exchequer an estimated Rs 2.65 lakh crore, Sitharaman said at the end of her presentation on Thursday.
Rahul Bajoria, chief India economist at Barclays, however, said the measures are likely to cost the exchequer Rs 1.19 lakh crore, estimated at 0.6% of the country’s gross domestic product.
Excluding the production-linked incentives, the fresh expenditure that the new…